Analysts such as Alessandro Migliorini from brokerage Helvea applauded the solid performance even though he expects a “moderation of growth over the next few months.”

Rival Swatch , which earlier this month said that annual sales have for the first time breached CHF7 billion, is also clocking up record sales. Its chief executive Nick Hayek even said that he sees no sign of a drop in demand for watches despite gathering fears of a recession in Europe.

This exceptional insulation from the slings and arrows that has befallen other sectors allowed both firms last year to expand production and chase fresh records.

But since no industry is considered able to permanently defy the gravitational forces of economic downturns,

Bloomberg

investors have shunned Swatch’s and Richemont‘s stocks, sending both down 15% last year.

But analysts have no reason to worry and see even more room for further growth. “We feel comfortable with our 10% sales increase for Richemont,” said Vontobel analyst Rene Weber.

Although low double-digit growth rates are below the 25%-plus expansion rates of a few quarters ago, this is more than other industries can offer investors right now.

This is providing some fuel to Richemont’s and Swatch’s shares, which have both added some 6% this year. But moderation and caution should continue to guide investors.

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